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nydus/The Theory of Business EnterprisePublic
Page 246 of 422
Table of Contents

CHAPTER Vn

therefore, suffer a lesion

which is a moDotonlc function. The discrepancy between [/.(cap), and [/.(cap') is, in lai^ part, embodied in securitleB with fixed charges; which makes a readjuatmeiit Tory difficult even apart from A's

reluetanCQ.

able, and only to the least feasible extent. But under conditions, such as now prevail, which involve the requirement of a progressive rerating of this kind, this reluctant concession never overtakes the need of readjustment, — and the discrepancy between capitalization and eaming-capacity is therefore chronic so long aa no extraneous circumstances come in temporarily to set aside the trend of business affairs in this respect. It may, therefore, be said, on the basis of this view, that chronic depjS38i(H), more or less pronounced, js normal^ to business under the fully developed regime of the machine industry.'

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